Energy bills are set to rise and fall much more quickly after Ofgem confirmed it will update its price cap four times a year.
The energy regulator currently updates its price cap twice a year - in April and October.
Ofgem will now review the price cap every January, April, July and October.
It means millions of households who are on a standard variable tariff will see more frequent changes to their energy bills.
Ofgem says the idea of reviewing its price cap more often is so energy companies can provide more accurate pricing for customers.
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The regulator will confirm how much its October price cap will rise by on August 26.
It comes as energy bills continue to spiral, with analysts predicting the October price cap could hit £3,359.
Energy experts at Cornwall Insight are then predicting a further rise to £3,616 in January 2023.
This price cap was last adjusted in April this year, rising from £1,277 to £1,971 per year on average.
Ofgem first confirmed it would consult on changes to the frequency of the price cap back in May this year.
Jonathan Brearley, CEO of Ofgem, acknowledged that current energy price rises are "deeply worrying" - and warned households face higher prices than ever before.
"Today’s changes ensure the price cap does its job, making sure customers are only paying the real cost of their energy, but also, that it can adapt to the current volatile market," he said.
"We will keep working closely with the Government, consumer groups and with energy companies on what further support can be provided to help with these higher prices."
Gillian Cooper, head of energy policy at Citizens Advice, said: "Changing to a quarterly price cap should limit the risk of any more suppliers going bust, which is a good thing.
"But our bills are already incredibly high and still rising.
"The Government was right to bring in financial support for people, but it may not be enough to keep many families afloat. It must be ready to act again before winter draws in."
What is the Ofgem price cap?
Despite what its name suggests, the price cap isn't a limit on how much you pay for energy.
Instead, it is a cap on the unit rate a supplier can charge for each unit of gas and electricity you use.
This means if you use more energy, you'll pay more - use less, and you’ll pay less.
The price cap also sets a maximum for the daily standing charge, which is what you pay to have your home connected to the grid.
The price cap currently covers around 24 million households.
You will be on the price cap if you're on a standard variable rate tariff - the default rate for suppliers.
It applies to energy customers who haven't fixed into a deal, or those who were moved to another supplier after their old energy provider went bust.
If you are on an standard variable rate tariff, then you will see your bills go up in line with the price cap.
Energy bills are rising due to the soaring cost of wholesale gas.
Wholesale prices started to rocket following the Covd pandemic - with suppliers pushing the increase onto customers.
Businesses being shut down led to low global energy consumption, followed by a rapid bounceback as the economy began to open up again.
Prices have since risen further following the Russian invasion of Ukraine.
